Recession may threaten 'U'
By ADRIENNE LYONS
The possibility of a recession is a threat to the 9.3
per cent increase in funding the University is slated to
receive from the state, a University official said
Meanwhile, University officials are feverishly
working on a budget package for the new ap-
propriations to present to the Board of Regents at the
meeting on Thursday.
UNIVERSITY VICE-PRESIDENT for State
Relations Richard Kennedy said school officials "fear
what may happen in terms of a recession,"
."There are always the problems of an executive or-
der coming from the governor withholding funds. We
could wind up with a state order saying 'X per cent
should be withheld (from the planned ap-
propriations)," Kennedy said, adding that Gov.
William Milliken's office is "very worried" about a
Kennedy said if funds are withdrawn from the
University during the coming year, 'there is a range of
things the University could do, including freezing ap:
pointments, deferring equipment purchases, and staff
UNIVERSITY OFFICIALS currently are preparing
a budget package to take to the Regents containing
recommendations for University finances. University
Vice-President and Chief Financial Officer James
Brinkerhoff said an average tuition hike of 8.75 per
cent and a pay increase of seven per cent for faculty
and staff are likely to be included in the package. .
a Michigan Daily-Tuesday, July 17, 1979-Page 3
Although state and University officials refused to
speculate on the likelihood of a recession, Bob Endriss,
budget analyst for higher education in the state Office
of the Budget, said, "In the present state (of the
economy), some national economists say we're just
about to entera recession and they don't think it will be
According to both Endriss and Kennedy, several
years ago the state withdrew appropriated funds from
the University because of a recession. The funds with-
drawn amounted to approximately one to two per cent
of the total University appropriation at that time.
THE STATE legislature Friday approved a 9.3 per
cent increase in funds to the University, an increase of
approximately $12.2 million from last year. The fun-
ding level for the coming year was set at $148 million.
DETROIT (UPI) - Auto industry
contract talks for 750,000 workers
began yesterday at General Motors
Corp. with a militant show of union for-
ce over retiree pensions and a
management plea to avoid an economy-
crippling nationwide strike.
United Auto Workers (UAW) Union
President Douglas Fraser shrugged off
as temporary a current car sales slump
blamed on gasoline shortages and once
again made clear he considers the ad-
ministration's seven per cent wage WHILE A
Several thousand retirees and other retirees ai
UAW members picketed GM's world- streets bel
wide headquarters in a massive but or-
derly demonstration sparked by the O
emotional issue in this year s round of
bargaining - increased pension GRAND R
benefits for retirees. GRARy
IN A BREAK with tradition, the and two oth
opening of negotiations was delayed for and to
nearly two hours while Fraser and yesterday to
other union officials confronted GM Michigan'sa
Chairman Thomas Murphy and Mchigan's a
President E. M. "Pete" Estes to com- license plate
plain about alleged company inter- administrate
ference in a crucial union election at a edmini
new GM plant in Oklahoma City. award-winni
Fraser said the union had "over- Petek,62,of'
whelming evidence" of an anti-union of Crunch Bi
See AUTO, Page 9 pleaded inno
tod a Morris G1
Prof passes away
University English Prof. Marvin Feldheim, 64,
died yesterday. Felheim received many awards
during his career, including the 1979 Joe Lee Davis
Professorship in American Culture, and People
magazine recently did a profile of the University in-
structor. "Mary Felheim was a person born to be a
teacher," said Interim University President Allan
Smith. "His love of teaching and of the humanities
carried him inot the hearts of his students in a way
which few persons can achieve. His influence in the
University and throughout the state will be sorely
missed." Funeral services will be held at 11 a.m.
today at Temple Beth Emeth, 2309 Packard Rd.
UTO INDUSTRY contract talks for 750,000 workers began yesterday at General Motors Corp. in Detroit,
rnd autoworkers, in support of demands for cost of living pension increases for retirees, marched on the
ficial pleads innocent to
APIDS (UPI)-A top aide associated with M.G. Casey Inc., a well-
of State Richard Austin known Detroit consulting firm which
er men pleaded innocent has done work in Austin's political
charges stemming from campaigns, pleaded innocent to con-
d scheme involving spiracy, mail fraud and influence ped-
ward winning bicentennial dling charges.
s. ALL THREE MEN were released on
erkowitz, 58, of Lansing, an $10,000 personal recognizance bond by
r with more than 30 years U.S. Magistrate Stephen Karr.
n state government, and The three were indicted July 2 by a
ng film-maker Theodore federal grand jury which charged
West Bloomfield, president Berkowitz with scheming to pay con-
rd Studios Inc. of Detroit, tractors for work on the bicentennial
cent to federal mail fraud license plates which they did not ac-
cy charges. tually perform.
eicher, 62, of Southfield, The indictment charged Berkowitz,
Petok, and Gleicher with working out a
1974 agreement on the design, layout
and consultation for the license
plates-work which was actually per-
formed by state employees.
PETOK ALLEGEDLY received a
check for $1.260 for the work which was
allegedly sent through the mail.
Gleicher is also accused of receiving
kickbacks totaling $18,000 for using his
position of influence with Austin to
make sure Petok won contracts for
producing the "Safety Man" commer-
cials. Petok won a 1971 Academy
Award for in an animated cartoon
category for the commercials.
U of Iowa goes gasahol
All the 300 gasoline-powered vehicles in the
University of Iowa fleet are now running on gasohol.
The conversion began in early June, when the
University received just 70 per cent of its gasoline
allotment for the month. The vehicles use a mixture
of almost 20 per cent alcohol, the rest gas. "We put
880 gallons of alcohol in the tank first," said George
Klein, business manager of the university's
physical plant. "Then a transport unloads 7,500 to
8,000 gallons of gasoline." But the conversion hasn't
been cheap. "We are buying alcohol for $1.75 a
gallon, which increases the overall cost 11 or 12 cen-
ts a gallon," Klein added. He indicated that if the
university's shortage of gasoline continues, the
conversion to gasohol may become permanent.
4347 . .. the Near Eastern Studies department will
present Prof. Clement Henry and Prof. Ali El-
Houderi speaking on "Theory and Practice in North
Africa Politics" at 1 p.m. in Lecture Room 1,
MLB ... The Ann Arbor School of Metaphysics will
sponsor a lecture and workshop on "Psychic You"
at 7:30 p.m. at the Ann Arbor Public
Library ... there will be a Faculty Chamber con-
cert in the Rackham Building at 8 p.m. . , . also at 8
p.m., the Summer Reperatory Theatre presents
"Wedding Band" at the Power Center.. . FILMS:
Media Resources Center-Green Machine; At the
Crossroads; Farming and the Land; Right Whale:
An Endangered Species; program begins at 7:30
p.m., Aud. 3, MLB ... Ann Arbor Film Co-
op-Ford's The Searchers, 8 p.m., Aud. A, Angell
On the outside
The clouds will roll in today, but the temperatures
will be somewhat comfortable, in the upper 70s. The
low will hit the mid-50s..
Correction Happenings ...
An article in Saturday's Daily stated that Ronnie .Happ eis
Preson as arained ridy onchaged f amed -. Drug Help will be offering training session for
Preston was arraigned Friday on charged of armed volunteers interested in crisis phone work starting
robbery. Ronnie Collins was the man arraigned. Friday. Call Lorraine for an interview at 994-
The Daily regrets the error.